SA’s factory owners showed their biggest swing into pessimism on record in October, the Barclays-sponsored purchasing managers index (PMI) released on Tuesday showed. A 13.2-point plunge in expected business conditions in six months’ time caused the overall index to fall 2.6 points to 45.9 points, the monthly poll of purchasing managers done by Stellenbosch University’s Bureau of Economic Research (BER) showed. The index tends to predict what Statistics SA’s manufacturing output data will show in about two months’ time, fairly accurately. September’s figure was revised down to 48.5 points from the previously reported 49.5 points. The consensus of economists was the PMI would recover to near the neutral level of 50. A result under 50 indicates SA’s manufacturing output is shrinking. BER said manufacturing was at its lowest level since January, and augured poorly for SA’s chances of recording fourth quarter GDP growth. Four of the five main PMI subcomponents declined month on month, w...
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